Bitcoin “Not an Investment,” Will Be “Shown Not to Have Any Substance” Says Billionaire Investor

Billionaire investor Howard Marks has recently stated buying bitcoin isn't investing, and that it will be shown "not to have any substance.

This isn't the first time Marks slams the flagship cryptocurrency.

Howard Marks, a billionaire investor and the founder of Oaktree Capital Management, has recently slammed bitcoin and other cryptocurrencies, as he stated buying bitcoin isn’t an investment, but a trade that “will be shown not to have any substance.”

It's not an investment ... it's a trade. In the long run, I think it will be shown not to have any substance.

Howard Marks

Per the billionaire investor, those who are buying the flagship cryptocurrency are only doing so because they believe “someone will buy it from them at a higher price.” This, per his words, is part of the “greater fool theory.” The theory itself sees someone buy an asset at a highly inflated price, so it can then be sold to someone else at an even higher price, effectively being passed to the next “fool.”

As such, Marks noted, people buy bitcoin and other cryptocurrencies not because of their intrinsic value, but “because they think it’s going up.” The investor’s Oaktree Capital notably has $121 billion of assets under management, with Marks himself having a net worth of over $2 billion.

Some people are eager to speculate on digital currency for profit. Others want to put a little money into these to-date-profitable phenomena rather than run the risk of missing out. But they're not real!